Covid-19: Employment Rights

Grahame Morris Excerpts

Tuesday 17th November 2020 Westminster Hall

[Grahame Morris (Easington) (Lab)]

Thank you for calling me to speak in this debate, Sir Christopher. I also thank the hon. Member for Paisley and Renfrewshire North (Gavin Newlands), my colleague on the Transport Committee, for securing this important debate. It would be remiss of me not to remark on the fact that this is a well-attended debate with representatives from all political parties, apart from the Government party and the Minister, who has to be here. I do not know whether that is a reflection of the importance that the governing party attach to employment rights, but it is a sad indictment.

I declare an interest. I have been a member of a trade union and the Labour party all my adult life, and I have the honour of chairing the Unite parliamentary group. I want to highlight cases of dreadful practices, but I also want to pay tribute to the thousands of employers who have gone out of their way to protect and reassure their employees at a time when they themselves often face unparalleled pressures, stress and uncertainty. However, it is regrettable that some rogue employers have sought to use the covid-19 crisis as an opportunity to force workers to sign up to wage cuts in inferior conditions under the threat of dismissal. While the practice of fire and rehire is not currently unlawful in and as itself, the way in which it seeks to capitalise on people’s vulnerability, particularly at this time during the pandemic, is, in my opinion and in the opinion of most reasonable people, morally despicable and indefensible and cannot go unchallenged. It is noteworthy that these actions are outlawed in most other European countries. My belief, shared by many others, is that that should be the case here, too. I will return at the end of my speech to the Minister’s remarks in our previous debate, as referred to by the sponsor of the motion, the hon. Member for Paisley and Renfrewshire North.

I pay tribute to the excellent work of my union Unite in successfully arguing and mitigating many cases of employers attempting to utilise this terrible practice of fire and rehire. However, it has not always been possible to reach agreement, as was the case with the British Airways cargo workers based at Heathrow airport, where more than 850 Unite members have balloted and are set to strike in December over pay cuts of between 20% and 25% and threats to outsource the workforce.

At the same time, Unite the union has announced December strike action at Heathrow airport in protest at the loss of employment rights and wage cuts for not just baggage handlers but firefighters, engineers, campus security, baggage operations and operational and air-side workers. Unless the employer acts in a reasonable fashion, it will effectively close our major airport over the Christmas period.

Fire and rehire is not restricted to the aviation sector, although there are some terrible abuses in that sector. ESS, part of the multimillion-pound Compass group, has been branded Britain’s most heartless employer by Unite, due to the manner in which it is treating staff working on Ministry of Defence bases. They are being forced to sign contracts making them hundreds of pounds a month worse off, with the threat of immediately losing their jobs.

Workers in our criminal justice system are being deprived of one of the most basic employment rights—the right to a safe workplace. Court staff are made to attend workplaces that the Public and Commercial Services Union insists are not covid-secure. The alarming number of outbreaks in the courts suggests that the union is correct. Perhaps this is a direct consequence of there being no assessment process agreed with the trade unions, or of the court service’s refusal to publish individual site assessments and only making them available on request.

I am told that in prisons, some governors have tweaked their exceptional delivery models to permit classroom-based education, despite national guidance that says this must not happen while covid threat levels remain high. The University and College Union is seeking urgent clarification about this, as are its members, who are being made to continue with face-to-face teaching and attendance in person in our prisons, despite the new restrictions. Whether in courts or in prisons, a business as usual attitude from managers is putting loyal staff at unnecessary risk, which is quite simply unacceptable.

In conclusion, a business, a government and, indeed, every organisation—even society itself—will be judged on how we get through this extremely difficult period. Only last week, the Minister said in the Chamber:

“The very threat of fire and rehire is totally unacceptable”.—[Official Report, 10 November 2020; Vol. 683, c. 718.]

Will he commit today to outlawing this totally unacceptable practice once and for all?

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

It is a pleasure to serve under your chairmanship, Sir Christopher. Like everyone else, I congratulate the hon. Member for Paisley and Renfrewshire North (Gavin Newlands) on securing today’s important debate. This is a really important matter—a collective matter—and we have heard a number of excellent contributions from across the Chamber detailing individual issues within the overall, encompassing issue of workers’ rights.

Clearly, covid-19 has had a massive effect; it reaches deep into our economy and society. It has required us, as a country, to wrap our arms around the economy and around businesses and employees as well. The Government have acted decisively to provide an unprecedented package of support to protect people’s livelihoods.

[Grahame Morris]

Will the Minister give way?

[Paul Scully]

I will briefly, but I do want to make progress.

[Grahame Morris]

I appreciate that the Minister is under siege, so I will just ask a simple question. If we are truly wrapping our arms around workers and employees, will he take steps to ensure that the awful practice of fire and rehire is outlawed, because it is unnecessary and is having an appalling effect?

[Paul Scully]

The reason why I am limiting interventions is that I want to leave the hon. Member for Paisley and Renfrewshire North time at the end of the debate to sum up. I will clearly cover fire and rehire in a second.

Before doing so, I want to look at just some of the ways in which we have wrapped our arms around the economy and around businesses and employees. We have done that through the furlough scheme, which has allowed 1.2 million employers across the UK to furlough 9.6 million jobs. As we have heard, that scheme has been extended to the spring. With regard to the self-employment income support scheme, there is an increase under the third instalment of the grant, covering November to January.

It is also important that we help to get people, and particularly young people, back into work; we have heard about that from other hon. Members today. That is why, as we have announced, more than 19,000 jobs have been created so far through the kickstarter scheme, helping young people from across the country into the workplace and into a variety of sectors. In addition, 1.3 million businesses have had a Government-guaranteed loan to support their cash flow through the British Business Bank. That is delivering £8 billion to more than 98,000 SMEs—something close to my heart.

The hon. Gentleman talked about fire and rehire tactics. A key aspect of building back better is to continue championing a flexible and dynamic labour market, which gives employers the confidence to retain and hire staff, while maintaining a framework that protects individuals. For those who, sadly, lose their jobs, clear laws about unfair dismissal will ensure that their rights are protected. We have tightened the protections throughout the covid-19 pandemic. For example, we have made sure that statutory redundancy pay, statutory notice pay and unfair dismissal compensation are based on a furloughed employee’s normal pay rather than furlough pay. People who, sadly, are made redundant will receive the same level of financial compensation as they would if they had not been furloughed.

To understand better the issues in relation to fire and rehire, the Government are working with ACAS, and we are bringing together a number of roundtables with businesses, employee representatives and other bodies to discuss these issues in more detail. The House should be left in no doubt that this Government will always continue to stand behind workers and to stamp out unscrupulous practices where they occur.

We have responded swiftly and effectively to the pandemic.